What is the present value of the cash flows

Assignment Help Accounting Basics
Reference no: EM132692558

Question -

Q1. What is the present value of $2,000 per year for 9 years discounted back to the present at 9 percent?

2. The state lottery's million-dollar payout provides for $1.2 million to be paid in 25 installments of $48,000 per payment. The first $48,000 payment is made immediately, and the 24 remaining $48,000 payments occur at the end of each of the next 24 years. If 9 percent is the discount rate, what is the present value of this stream of cash flows? If 18 percent is the discount rate, what is the present value of the cash flows?

Reference no: EM132692558

Questions Cloud

Differences between bcg and ie portfolio matrices : Please consider an industry in which you have worked, are working, or would like to work when addressing the questions.
Example of moral hazard and of adverse selection : Define and give an example of moral hazard and of adverse selection. Be distinct about the two.
Write an academic critique of kotter : Write an academic critique of Kotter - Undertake a PESTLE analysis of the drivers for change in Alert Logic. Create a PESTLE table showing each element
What are the health setting : What are the health setting? Do you believe that the organization's culture and quality are linked, explain why?
What is the present value of the cash flows : If 9 percent is the discount rate, what is the present value of this stream of cash flows? If 18 percent is the discount rate, what is the present value
Discuss why starting large number of wafers into production : Discuss why starting a large number of wafers into production will boost profit even though the chips that ultimately result from the wafers are ones
What did the hawthorne studies discover : a) What did the Hawthorne studies discover and why it is important to managers?
Prepare the necessary adjustments on June : April 5 Received from A, a customer P500,000, 60-day ,12% note, dated April 4, in payment of an account. Prepare the necessary adjustments on June
Determine and calculate cost per equivalent unit for labor : Calculate the cost per equivalent unit for labor, assuming that labor is added uniformly throughout the production process.(Round answer to 2 decimal place)

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd